Romney: I paid 15 percent income tax

Republican presidential frontrunner Mitt Romney, under fire for not releasing his tax returns, said in South Carolina that he probably pays only 15 percent in federal income taxes.

Romney

Romney, speaking to reporters, hinted that he will release only his return for “the most recent year”, and will make it public in April long after most Republican presidential primaries and caucuses.

“It’s probably closer to 15 percent rate than anything,” said Romney, “because my last 10 years, I’ve — my income comes overwhelmingly from some investments made in the past, whether ordinary income or earned annually.

“I got a little bit of income from my book, but I gave it all away. I get speakers fees from time to time, but not very much.”

Most Americans pay taxes on wages and salaries, where the rate is up to 35 percent. But the rate on capital gains — the sale of bonds, real estate and stocks — is just 15 percent. Leading Republican politicians have proposed cuts in the 15 percent tax.

President Obama paid 26 percent of his income in federal income taxes, according to his 2010 return. Two best selling books have been Obama’s principal source of income.

According to a recent study by the bipartisan Congressional Research Service, the capital gains by upper income Americans was the leading cause of the nation’s growing income disparity in the decade between 1996 and 2006.

Romney, in filings for his presidential run, has estimated his wealth at between $190 million and $250 million. The candidate’s official residence is in New Hampshire, but he owns homes in La Jolla, California, and a vacation house in New Hampshire.

The “not very much” reference belies Romney’s income on the lecture circuit.

Between February of 2010 and February of 2011, he took in $374,327 for appearances, or $41,592 per paid speech.

Romney has resisted or fudged calls to release his tax returns, most recently when challenged by Texas Gov. Rick Perry in a debate Monday night. Making tax returns public is a longstanding America tradition.

The candidate’s father, Michigan Gov. George Romney, made public his returns in advance of the 1968 presidential race. So did rival Richard Nixon, long the most secretive of American politicians.

The tax returns of this year’s race have already yielded one double dipper. Perry arranged early last year to collect a $92,000-a-year Texas state pension even while continuing to serve as governor of the Lone Star State.